What is the ARR, NPV, and profitability of these two plans?

Lolas Company operates a chain of sandwich shops. (Click the icon to view Present Value of $1 table.) (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two plans -X More Info Calculate the payback for both plans. (Round your answers to one decimal place, XX) Amount invested Expected annual net cash inflow Payback 5.5 years 1,525,000 $ 8,450,000 Plan A The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,450,000. Expected annual net cash inflows are $1,525,000 for 10 years, with zero residual value at the end of 10 years. Under Plan B, Lolas Company would open three larger shops at a cost of $8,300,000 This plan is expected to generate net cash inflows of $1,050,000 per year for 10 years, the estimated useful life of the properties. Estimated residual value for Plan B is $1,300,000. Lolas Company uses straight-line depreciation and requires an annual return of 7% 7.9 years 8,300,000 1,050,000 $ Plan B Calculate the ARR (accounting rate of return) for both plans. (Round your answers to the nearest tenth percent, X.X%.) ARR Plan A Plan B Print Done iReference Present Value of $1 4 %5%| 6%|7% 8%| 9% | 10%| 12%|14%| 15% Reference Future Value of $1 1% 23% 4%5%6% 7%8%9%10% 12 % 3% 16% 185 Periods 1% Future Value of Ordinary Annuity of $1 Present Value of Ordinary Annuity of $1 Periods 1% 2% 3%4% 5%6% 7% 8% 9%| 10% 12%14% 15% 16%| 18%| 20% Periods 1%2% 3%4%59%6%7%8%9% 10%12% 0,608 0372 | 0228 0141 | 00870054 0034 0021 0013 0009 0003 0.001 0001 0001 74 36 1174 289.0o 700: 40 48.8960.40 75.40 95.03 120.8 154.8 199.6 259.1 337.9 4426 767.1 1,342 1,779 50 64.46 84581128 1527 209.3 2903 O655738 815 1 1164 2400 4 995 7.218 Print Done Print Done Check Answer 38988 88588 gu 8 8883 5 SS5 N6 O7892 m3 8883 8S883 S 85 82888 88585 1111 112 22 23 334 4556 6Nooo0 921 2 9E 21 :mmus ESS Sm S3mS3 2345 NE39 8838 8359 8882 99 88859 825 R= 8393 SI65 8 SS 55858 8588 283%8 633 s s 2345 6N829a583 3583% 335% 8 N5 88298 8938 8388 8888 cO7892N3 g 298 &883385885 81 45567 NNoeo 99 22 9 E33 Nod8 22933 E9S99 23 5 21 56770 gosE E P293 229 7 2 ON N S